A federal district judge has upheld a bankruptcy court’s finding that a creditor with whom Cohen Seglias Pallas Greenhall & Furman filed an involuntary petition in order to collect debts from a defunct business acted in bad faith, resulting in dismissal of the petition, including the firm’s claim.
Cohen Seglias, which has a $200,000 judgment from the Philadelphia Court of Common Pleas against Forever Green Athletic Fields, had filed an involuntary petition under Chapter 11 of the Bankruptcy Code against Forever Green in 2012 with Charles and Kelli Dawson, who also have claims against the company.
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